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Your job is to staff the Old Main Bakery and Deli, which is located in a downtown office building.

2020/11/30 Labor Scheduling Project

Labor Scheduling Project

Your job is to staff the Old Main Bakery and Deli, which is located in a downtown office building. This
operation caters to students and workers in the downtown area, but is mostly for the benefit of the
employees of the office building (to keep them closer to the office during the day!)
Using Excel, develop a chart similar to the one below and plan the staffing and scheduling for the Old
Main Deli. There is no single staffing formula that is to be used, you must think and assign a pay rate
(which will dictate the amount of taxes to be paid.) The minimum wage in PA is $7.25 per hour.
Instructions
The Bakery and Deli is open from 7am – 4pm, five days a week, Monday – Friday. It is closed
Saturday and Sunday. You can schedule staff to work all five days, or fewer days, just indicate
clearly on your Excel schedule.
The daily sales average is $1,900. The daily customer count averages 350. Sales history shows:
25% of revenue is generated between 7am-8am
60% of revenue is generated between 11am-1pm.
The Bakery & Deli uses mostly convince foods, especially at breakfast, but makes fresh sandwiches
daily.

You will need to pay employer taxes for Social Security (6.2%) and Medicare tax (1.45%). Use one
or two columns in your Excel sheet, your choice.
Assume no employees will receive other fringe benefits.
Management goals is to keep labor costs right around 24% of revenue. (NOT way below and NOT
above!)
Management also has a goal of producing $45.00 in sales per labor hour scheduled.


The labor market is fairly tight so there is no wait staff. All management/supervisors are included on
the schedule and in total labor cost (there is no “owner”.) Customers place orders and pay at one
location, and pick up orders at another location. Disposables are used and customers clear their own
tables.

Be sure you indicate who is in charge of opening, closing, and supervising the other employees.
Make sure these employees have appropriate job titles schedules and compensation
2020/11/30 Labor Scheduling Project
https://psu.instructure.com/courses/2068796/assignments/11907388 2/5
Make sure these employees have appropriate job titles, schedules and compensation.


Remember: Too many hours and you won’t meet your budget, too few hours and you can’t provide
good customer service! You need to figure out a staffing/scheduling plan that is on target with
management goals.
Example of schedule template to use in Excel:
Position
Daily Work Hours (eg.
8am-1pm)
Number of
Hours
Hourly Wages
Total Cost of
Wages
Emp
Use Excel form
This is just an example of how you can “layout” your Excel spreadsheet. Add more rows or columns as n
Evaluation
Once you have created your schedule, you must answer the following questions in the Excel sheet:

  1. How much (in dollars) can you plan to spend on labor per day?
  2. How many total labor hours can you schedule each day?
  3. How much are you actually spending on labor per day?
  4. What is your actual overall labor cost percentage once you pay wages and taxes?
  5. What is your actual overall sales per labor hour?
  6. Calculate two labor productivity measures that you could use to assess your performance for the Old
    Main Bakery & Deli. (other than Labor Cost % and Sales per Labor Hour.) Show your two
    productivity measures and calculations on your Excel sheet. In #7, below, do not just explain the
    measures.
  7. Provide a brief (1-2 sentences) explanation explaining why you chose EACH productivity measure.
    One explanation for each measure.
  8. Briefly explain how you would expect the operation to handle a staff member calling in sick.
  9. Suggest two strategies this operation could use if the minimum wage went to $10 (or higher) in PA.
  10. Briefly describe something you learned from this project about using labor productivity measures.
    Submission Instructions
    2020/11/30 Labor Scheduling Project
    https://psu.instructure.com/courses/2068796/assignments/11907388 3/5
    Labor Project
    Submission Instructions
    Schedule and answers to the questions will be typed in an Excel document. NO OTHER
    DOCUMENT WILL BE ACCEPTED, IT MUST BE IN EXCEL.
    Submit by uploading into the Canvas drop-box.
    2020/11/30 Labor Scheduling Project
    https://psu.instructure.com/courses/2068796/assignments/11907388 4/5
    标准 等级 得分
    4.0 分
    2.0 分
    2.0 分
    3.0 分
    3.0 分
    2.0 分
    1.0 分
    Hours covered &
    Appropriate positions
    to effectively cover
    operation (including
    supervision)
    All hours covered,
    including time alloted
    for opening and
    closing. Obvious
    supervisor scheduled
    for all hours.
    4.0 得分
    Opening,
    closing,
    obvious
    supervisor and
    heavy periods
    appropriately
    staffed
    3.0 得分
    No
    supervision or
    lack of
    coverage for
    part of hrs or
    heavy service
    times.
    2.0 得分
    No
    supervision
    or two
    parts of
    hrs. not
    covered
    1.0 得分
    No
    supervision
    AND 2-3
    parts of hrs
    not
    covered
    0.0 得分
    Schedule
    does not
    cover
    operation
    needs
    Positions, Hours,
    Wages, Taxes and
    Totals organized on
    Excel
    2.0 得分
    Details complete for
    all positions
    1.0 得分
    Incomplete details for 1 or
    more positions
    0.0 得分
    No Excel document
    with schedule
    Total Labor Cost
    calculated for each
    employee
    2.0 得分
    Correctly
    calculated, no
    overtime, pay
    rates logical
    1.0 得分
    1-2 positions not correctly
    calculated (may be due to
    overtime on schedule)
    0.0 得分
    More than 2 positions
    not correctly
    calculated
    (overtime?)
    Total Labor Cost,
    Labor Cost % and
    Sales/Labor Hr.
    calculated
    3.0 得分
    All
    correctly
    calculated
    2.0 得分
    1 measure incorrect OR
    Calculations correct, but
    numbers wrong due to incorrect
    input
    1.0 得分
    2 measures
    incorrectly
    calculated
    0.0 得分
    3 measures
    incorrectly
    calculated
    Total Labor Cost,
    Labor Cost % and
    Sales/Labor Hr. meet
    targets
    3.0 得分
    Labor cost %
    within .5% of
    goal and Sales
    per labor hour
    within $.50
    2.0 得分
    Labor cost %
    between .6 and
    1% of goal, Sales
    per labor hour
    within $1.
    1.5 得分
    One in
    range,
    one not
    in range
    1.0 得分
    Labor cost %
    between 1-
    2%, Sales
    per labor
    hour within
    $2.
    0.0 得分
    More
    than 2%
    or $2 off
    goal.
    Two Additional Labor
    Productivity Measures
    Calculated
    2.0 得分
    Two
    correctly
    calculated
    1.0 得分
    1-2 identified, only 1
    correctly calculated
    0.5 得分
    Correctly identified, but
    not correctly calculated
    0.0 得分
    None
    correct.
    Explanations for
    Labor Productivity
    Measure Choices
    1.0 得分
    Choices adequately
    explained
    0.5 得分
    One explanation needs
    improvement or is missing
    0.0 得分
    Not adequately
    explained
    2020/11/30 Labor Scheduling Project
    https://psu.instructure.com/courses/2068796/assignments/11907388 5/5
    总得分: 20.0 ,满分 20.0
    标准 等级 得分
    1.0 分
    2.0 分
    Answers to additional
    questions
    1.0 得分
    Answers show adequate
    understanding of labor cost and
    control measures
    0.5 得分
    One answer
    needs
    improvement
    0.0 得分
    Not adequately
    explained or
    missing
    Instructor Flex Points
    Excel formulas used
    for calculations,
    schedule is clear and
    professionally
    prepared

    Clear, professional project,
    Excel used for most or all
    calculations

    Excel used for some
    calculations, but not all.
    See comments.

    Excel not used or
    other errors – see
    comments

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